What’s Missing? Investor/Agent Relationship

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Peter Drucker said “Efficiency is doing things right; effectiveness is doing the right things.” I tend to agree with this statement and have been successful in helping companies identify their profit producing activities and then create systems and processes to make those easier. 

As a real estate investor myself, as well as being an agent I can't seem to get this question out of my head "How can I provide my investors with the level of service I would want my agent to provide me?"

I pride myself on being honest, hardworking and responsive. Out of 50+ deals I’ve completed this year, 1 was retail. I am 100% investor focused. 

My question is, what do you see that is missing between the agent/investor relationship? 

I’ve thought about creating a website to showcase their properties, I currently use a google sheet that my investors helped me create, but I know a lot of people use investor carrot.

Anyone have any ideas on how to best profile your properties, and as an investor-what’s missing from your agent? 

I don't know if this answer is going to provide a lot of value you to you, but one thing that is super important is for an investor to be super clear around what expectations are and what they are looking for. As out of state investors, my partner and I have extra costs that local investors don't always have to account for (IE: local can self-managing, access a local handyman, leverage existing relationships, etc.). If it's out-of-state investors you are targeting, really get to understand their numbers and tolerance for risk. It may not be in-line with what your expectations are. At that point, you can decide to work together or that it might not benefit either of you to continue. At least by being up front from the beginning, you can all save time.

As for us, we use the typical formula of 75% ARV minus rehab costs. Take into consideration we have project mgmt fees that we have to pay for as well so we make sure the rehabs go to plan. We look for at least a 12% CoC ROI and positive cashflow. We add in insurance, property management, CapEx, maintenance/repairs, vacancy and any other potential expenses based on the property (refuse, water, etc. fo MF and lawn care/pest control for SFR). I can get more specific, but that's between me and our realtor. This type of relationship building can be difficult and take time, but if you're building a team, to us it is worth it.

As for profiling your properties, are you asking about how you can show the deals you've done? That's not as important to us. We need to get on the phone and get a feel for someone. We spoke to 5-6 agents before landing on the one we're working with now. She aligned with what our goals are when other agents were trying to convince us to buy in other parts of town and for price point well beyond where we wanted to be. Those are great examples of agents not "hearing" their client. There's no team there. Felt like the agents wanted to up-sell us without much upside. The numbers were actually worse. Those conversations and relationships didn't last that long after. Maybe you can chalk it up to us not being 20 years in the game, but if we feel like you aren't "hearing us" we stop talking.

Hope you find this helpful. Didn't mean to rant, but wanted to give my 2 cents.

As an investor myself, I understand what we want to see from agents - I was more asking along the lines of the best ways to showcase properties and communication styles. With inventory moving so fast here it is difficult to have information stay updated and was wondering if there were ideas on how to best support my investors using a software/proforma service. Here is a glimpse into one of our pro-formas that I put together with my investors.